Forex trading tutorial - one of these can be very helpful in giving you the basic knowledge from which to launch a successful forex trading career. In this article, I want to give you a few beginner basics to start you on the right path.
Never Trade On Instinct
Never make a trade based on instinct. Always use logic. Think “Spok" in Star Trek. He would have made an incredible trader!
I had a friend who made lots of trades based on gut feeling. He did well for a couple of months and then he blew it all in a single day. His wife is still not happy about that!
Learn As Much As You Can
The forex market is not for lazy people. Sure, you don't need to know much to start trading. But you owe it to yourself to continually learn.
Don't worry - the great thing about learning forex is that it is so interesting. You learn about the world and it's politics and economics and about the psychology of people in general. You'll love it, I'm telling you!
Always Have An Exit Strategy
Let's say you place a trade because you think the price will go up. So, how long will you ride this trend? What if it goes higher than you expected? What if the price suddenly turns around?
Always have an exit strategy before placing a trade. Either bail out if the price falls against you by a fixed percentage or make a decision as to how long you will hold on if the price goes even further in your favour.
Never Risk More Than You Can Afford To Lose
I'll give you an example of this. I once lost 20% of my trading balance. I decided to go on what I thought was a sure thing and trade the remaining 80%.
You can never get it right all the time and on this occasion I lost that remaining 80%! That taught me a big lesson - never let emotions get the better of you and trade more than you can afford to lose.
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